Bitcoin has shown strong signs of recovery in 2023. With the price of Bitcoin rising above $21,000 from its previous low of $16000 as of December 2021, many crypto traders are now curious to buy Bitcoin (BTC) online again. In the hope that the bullish trend would continue. Can the price of Bitcoin sustain above this level? Is the crypto market fully set to recover again or just on a relief bounce? How far can the price of Bitcoin go within this period before we experience another dip? If you are curious to find an answer to these pressing questions, then you need to read this work to find out more.
What is Bitcoin?
Bitcoin is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. It uses peer-to-peer technology to operate with no central authority or banks, managing transactions.
Bitcoin prices on the road to recovery in 2023 – How long can this last?
Bitcoin has shown great resilience since the beginning of 2023. The price has pushed higher consistently from its previous low at $16000 in December 2022 to create a new high at $21,440 on January 15, 2023. With the price of Bitcoin breaking the $20,000 psychological level and remaining above it for the last three days, many investors now suppose that Bitcoin prices are now on the road to a total recovery again. However, not every analyst today shares the view that the price of Bitcoin is now fully set to recover again.
Considering the fact that the Fed has not given up on the current interest rate hike, which has been the major cause of the bear season dominating the crypto market since 2022, many analysts today now admit the possibility of more dips coming into the market again, especially if the Fed decides to hike the interest rate again during their next session by month end.
The outcome of the Fed’s session this month could be considered the most important factor in determining the next direction for Bitcoin in 2023. Thus, a continuation of the rate hikes during the next session could cause the market to dip again while a total withdrawal from hiking the rates and embarking on quantitative easing by the Fed will greatly support the bullish trend for Bitcoin at this point. This means Bitcoin could continue higher above $30,000, as many projects today.
What are the targets for Bitcoin prices in 2023?
Analysts are currently divided on their forecasts for Bitcoin prices in 2023. While more than 60 percent are bullish, the rest are bent on lower targets for Bitcoin in 2023. The latter group, who are bearish on Bitcoin, argues that we are currently headed for a crypto winter in 2023. We will classify these two categories of analysts as bulls and bears.
Going by the bulls, their first major target for Bitcoin is to clear the $30,000 level within the first quarter of 2023 and to continue in this bullish trend during the second quarter of the year, when the prices will be expected to create new highs above $40,000 and to close the year retesting the all-time-high above $69,000 again.
On the other hand, the bears would consider the present pump seen so far in 2023 to be a relief bounce. This set of analysts expects the prices to dip from this level and create new lows below $15K. Here, they expect the price of Bitcoin to fall as low as $9000 in 2023 and to recover only from this level.
